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New Report Estimates Cost of Low Health Literacy Between $106 - $236 Billion Annually

Saturday, October 13, 2007 General News
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STORRS, Conn., Oct. 12 A new report releasedtoday from the University of Connecticut states that the cost of low healthliteracy to the United States economy is in the range of $106 billion to $236billion annually. According to the report, Low Health Literacy: Implicationsfor National Health Policy, the savings that could be achieved by improvinghealth literacy translates into enough funds to insure every one of the morethan 47 million persons who lacked coverage in the United States in 2006,according to recent Census Bureau estimates(1).
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"Health literacy" is defined as the degree to which individuals have thecapacity to obtain, process and understand basic health information.According to the U.S. Department of Education's 2003 National Assessment ofAdult Literacy (NAAL), which contained a health literacy component for thefirst time, 36 percent of the adult U.S. population -- approximately 87million people -- has only Basic or Below Basic health literacy levels.
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Persons with Basic health literacy would have trouble, even when usinginformation from a clearly written, accurate pamphlet, providing two reasonswhy persons with certain symptoms might have a specified test. Individualsconsidered to have Below Basic health literacy would not be able to recognizea medical appointment on a hospital appointment form, nor would they be ableto determine from a clearly written pamphlet containing basic information howoften a person might have a specified medical test.

"Our findings suggest that low health literacy exacts enormous costs onboth the health system and society, and that current expenditures could be farbetter directed through a commitment to improving health literacy," said JohnA. Vernon, PhD, Department of Finance, University of Connecticut, and leadauthor of the report.

Public policy plays an important role in addressing low health literacyand its effects. Conversely, the failure to act carries high costs in termsof individual health, healthcare spending, and the economic well-being of thenation as a whole.

"Providing the U.S. population with access to affordable coverage createsa more level playing field among those who are and are not health literate. Itis particularly challenging to improve literacy among populations who lackaffordable access to timely and appropriate health care," says Sara Rosenbaum,JD, The Harold and Jane Hirsh Professor of Health Law and Policy and Chair ofthe Department of Health Policy at the George Washington University School ofPublic Health and Health Services.

The report findings highlight two basic types of health policyinterventions. The first is elimination of disparities in health insurancecoverage. The second focuses on specific actions to improve the ways in whichhealth insurers and healthcare providers relate to and interact with patients.

"An individual's health literacy skills have a profound impact on his orher ability to manage a chronic illness, such as diabetes or high bloodpressure. If an individual understands and can act upon medical instructions,unnecessary emergency department visits and hospitalizations can be reduced,which in turn lowers overall healthcare costs," says Barbara DeBuono, MD, MPH,Executive Director, Public Health and Government, Pfizer Inc. The healthliteracy report was supported by a research grant from Pfizer.

"There is an important connection between health literacy, healthcarequality, and patient safety. We would expect that improvements in the healthliteracy field would advance patient safety as well," said Diane Pinakiewicz,MBA, President, National Patient Safety Foundation.

About University of Connecticut's (UConn) School of Business:

Founded in 1941, the UConn School of Business is one of the mostcomprehensive business schools in the nation offering undergraduate andgraduate programs in accounting, finance,
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